TORONTO - The Canadian specialty retailer Golf Town is expanding in the United States through a deal with Golfsmith International Holdings, Inc. (NASDAQ:GOLF).
Golf Town will pay US$6.10 per share in cash in a deal worth about US$96.8 million to acquire the 85-location golf chain.
The friendly takeover offer is 30 per cent above Golfsmith's public stock price at the close of trading on Friday about about 55 per cent above where the shares were when Golfsmith announced on March 1 it was seeking strategic alternatives.
Golf Town is owned by OMERS, which manages funds for Ontario public-sector employees.
The Toronto-based retailer currently has 54 stores across Canada and seven in the Boston area.